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Provincial SummaryEXPLORATION AND MININGIN BRITISH COLUMBIA 2012

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PROVINCIAL SUMMARY EXPLORATION AND MINING IN BRITISH COLUMBIA

2012

Ministry of Energy, Mines and Natural Gas Jim Britton, Robin Chu, Dave Grieve, Paul Jago, Jeff Kyba, Bruce Madu, and Bruce Northcote

HIGHLIGHTS FOR 2012

• Mineral and coal production estimated at $7.4 billion

• Evaluation and advanced-stage projects drives expenditures to $680 million

• New Afton mine opened; Red Chris and Mt. Milligan mines under construction

• Major expansions and upgrades at existing mines • Environmental Assessment Office tracking of 28

mine projects

INTRODUCTION The geological evolution of British Columbia, which

spans over 2.3 billion years, has endowed the province with abundant mineral and coal resources. As a result, the exploration and development of these resources is a cornerstone of the provincial economy. With more than half of Canada’s exploration and mining companies based in British Columbia, and the world’s largest concentration of exploration companies and mining professionals, the province is recognized as a leader in raising venture capital, and as a centre of excellence in mining and related fields, such as metallurgy, environmental engineering, mine safety, and the geosciences.

British Columbia’s transportation infrastructure provides ready access to world markets through expanding ports, and rail and highway networks. The province boasts attractive industrial electrical power rates; commitments to expand the power grid in the northwestern part of the province have the potential to increase exploration and development in a highly prospective region (Photo 1).

British Columbia has established GIS-based online geoscience database and mineral tenure systems. For example, MapPlace is an interactive map system that allows geoscientists free access to geology, mineral exploration, and mining resource information, and Mineral Titles Online permits explorationists to acquire and maintain mineral tenures remotely.

Attracting new investment to the exploration industry is a priority for the province and several incentives are available. The BC Mining Exploration Tax Credit Program and Exploration Investment Tax Credit for flow-through investors provide additional incentives to attract risk capital to the province. The Mining Exploration Tax Credit has been increased to 30% for qualified mineral

Photo 1. The Northwest Transmission Line will expand the power grid in the northwestern part of the province and increase potential exploration and development in a highly prospective region.

exploration undertaken in prescribed Mountain Pine Beetle affected areas of the province.

This document is a provincial-level summary of the industry and in sections divided by geographic regions (Figure 1). Readers seeking more detail should refer to a companion document prepared by the Regional Geologists: Regional Geologist Summaries, Exploration and Mining in British Columbia 2012 (Photo 2).

Figure 1. The locations of the geographic regions referred to in this publication and the location of some of the cities and towns in the province.

Provincial Summary, Exploration and Mining in British Columbia 2012 1

Photo 2. Readers seeking more detail should refer to a companion document prepared by the Regional Geologists: Regional Geologist Summaries, Exploration and Mining in British Columbia 2012.

OPERATING MINE HIGHLIGHTS British Columbia is Canada’s largest producer of

copper, its only producer of molybdenum, and its largest exporter of coal. The province also produces gold, silver, lead, zinc, and over forty industrial minerals including gypsum, magnesite, limestone, and dimension stone. Numerous quarries produce sand and gravel or crushed aggregate.

The total value of mine production for British Columbia in 2012 is estimated at $7.4 billion (Figure 2). Coal, copper, and molybdenum (in decreasing order) remain the most important solid mine products by value (Figure 3).

METAL MINES

Twelve mines produce metals in the province, ranging from major operations such as the Highland Valley Mine to seasonal producers that exploit small high-grade resources (Table 1 and centerfold map).

Copper remains the province’s highest value metal output and most producers have undertaken modernizations and expansions in recent years as strong commodity prices and investment incentives have supported capital infusions. Several copper mines have

Figure 2. Mineral and coal production in British Columbia, 2002-2012.

Figure 3. Pie chart showing the relative values of mineral and coal production by commodity for 2012.

co-product precious metals that boost production values: some of these could be considered gold mines.

Mines that are primary precious metals producers are attractive during times of elevated prices. They contribute less to the provincial metal output however, because achieving expected production tonnages, predicted metal recoveries, and effective cost control is challenging. Several advanced projects are addressing these challenges by applying proven “porphyry” deposit exploitation methods and scales to low-grade gold-silver systems.

The province’s polymetallic (zinc, copper, lead, silver, gold) production comes from a single operation at Myra Falls, and its success in recent years showcases this deposit type.

Construction was completed this year at the New Afton gold-copper mine of New Gold Inc, which opened in June, ahead of schedule (Photo 3). The development cost of the mine is approximately $765 million; in early 2013, it is expected to achieve a mill rate of 11 000 tonnes per day. This operation ushers in a new era of large tonnage underground mining, using block cave techniques that are anticipated to be closely studied by other British Columbia projects with high-grade resources at depth.

The largest base metal mine in Canada is the Highland Valley Copper copper-molybdenum mine operated by Teck Highland Valley Copper Partnership. Construction is underway on a $475 million mill optimization project, which is part of a plan to extend mine life to 2026.

The Gibraltar copper-molybdenum mine, operated by of Taseko Mines Limited and Cariboo Copper Corp, is

2 Information Circular 2013-1

Photo 3. The New Afton copper-gold mine opens with a blast! Pyrotechnical demonstration from New Gold’s “Open Day” in September (Steve Rothman photo).

near the end of a recent $325 million dollar investment in mine optimization and equipment procurement. Once completed, the mine is expected to be Canada’s second largest copper producer.

Thompson Creek Metals and Sojitz Corp undertook a staged start up of a new mill at the Endako molybdenum mine; full production is targeted for the second quarter (Photo 4). Various property-scale and company-wide complications resulted in suspension of mining in July, and production guidance was lowered with the processing of stockpiled ore. Work continued in the fourth quarter to optimize plant operations: the new mill is designed to increase throughput levels to 52 000 tonnes per day with reduced operating costs. Mining is expected to resume in the second half of 2013.

At the Mount Polley copper mine of Imperial Metals Corporation, the search for resources outside its main producing Springer pit continued with success. Exploration efforts included drilling at the Springer and Cariboo pits, Quarry, and WX and C2 zones, and underground drilling from a decline into the Boundary zone.

Metal production at the Huckleberry copper-gold-silver-molybdenum mine decreased, as expected, as low-grade stockpiles were milled to allow maximum focus on the Main Zone Optimization (MZO) plan (Photo 5). The plan extends mine life to 2021. Near-mine exploration drilling and geophysics successfully identified copper-

Photo 4. Operations at the Endako molybdenum mine. Photo A. Mining in the West Denak pit to supply a low-grade stockpile; Photo B. New Semi-Autogenous Grinding (SAG) mill.

molybdenum mineralization in the Main Zone Deeps outside the MZO pit plan.

The Copper Mountain copper mine, in production since August 2011, is operated by a partnership of Copper Mountain Mining Corporation and Mitsubishi Materials Corporation. Increased mining rate optimized mill throughput closer to 35 000 tonnes per day and enhanced copper recovery. A multi-year exploration program is actively upgrading resources, testing ore depths, and examining mineralization outside the current mine plan.

Nyrstar NV’s Myra Falls Operations was expected to mine and mill approximately 500 000 tonnes of zinc-copper-lead-silver-gold ore in 2012, similar to the previous year. Recently, the underground mine has replaced mined reserves through on-lease exploration. Exploration may increase next year as the company develops a long-term plan.

Sable Resources Ltd continued seasonal operation at the Shasta underground gold-silver mine. Production at less than 20 000 tonnes was enough to maintain the operation. The current estimated resource is enough to support two more years of mining.

Bralorne Gold Mines Ltd has been milling approximately 80 tonnes per day from stockpiled and


Photo 5. Overview of the Huckleberry copper-gold-silver-molybdenum mine site looking southwest. Mine geologist Justin Schroff points out site features: mill site is far left, stripping activities for the Main Zone Optimization are mid-left of centre, and active mining in the Main Zone Extension Pit is bottom center and mid-right of centre.

underground resources at its Bralorne gold mine. The company is targeting quartz veins in relatively undeveloped areas between three former mines (Bralorne, King and Pioneer) and actively developing the BK-3 zone through drifting and underground drilling. They are also evaluating an expansion of the operation to over 200 tonnes per day.

The QR mine of Barkerville Gold Mines Ltd has operated sporadically in recent years and was shut in November 2011 due to depletion of ore. Production was resumed in December this year, exploiting resources in the West zone, with the intention to produce gold late in the year. The mill awaits shipments of new ore from the Bonanza Ledge mine near Wells, which is under development.

Huldra Silver Inc has begun a small-scale, high-grade operation at its Treasure Mountain silver-lead mine near the Tulameen River. Vein material is mined underground and transported to the foot of the former Craigmont mine near Merritt for concentrating.

COAL MINES

Coal production in the province attained elevated levels of approximately 30.1 million tonnes this year despite changing short-term demand from Asian markets and price volatility. Most coal produced is of metallurgical grade (hard coking) coal, and is largely exported to Asia with lesser amounts going to Europe and South America (Photo 6).

Forecasts for coking-quality coal demand remain optimistic and many operations are expanding or extending mine lives through capital investments, new mine plans, and aggressive exploration. New interest in thermal coal has arisen as external governments explore clean technologies for power production and diversify their energy production.

The province exports coal from three regions: the East Kootenay coalfields, the Peace River Coalfield (both with several mines), and the Quinsam operation on Vancouver Island.

Photo 6. Expansion of the Ridley Island coal terminal near Prince Rupert is underway and receives fill material from nearby quarries. Increased coal shipments through this port from a variety of coal fields are anticipated.

East Kootenay Coalfields Mining continued at five large open-pit coal mines

operated by Teck Coal Limited in the Elk Valley area of the East Kootenay region. The Fording River, Greenhills, Line Creek, Elkview and Coal Mountain mines directly employ 3665 people and make major contributions to both the East Kootenay and provincial economies (Photo 7). Combined coal production is forecast at approximately 24.2 million tonnes of clean coal this year compared to the actual production total of 22.55 million tonnes last year.

Hard coking coal (HCC) is the predominant product at four of the five Elk Valley mines. A range of two or more products is marketed by each of these operations, based on variations in volatile matter and/or ash contents. The Coal Mountain Operations is the exception and produces mainly pulverized coal injection (PCI) coal.

In addition to hard coking coal, oxidized coal is marketed as thermal coal from some of the mines.

Peace River Coalfield Mining operations continued at the four open-pit

mines in the Peace Region: Trend, Perry Creek (Wolverine), Brule, and Willow Creek.

Hard coking coal (HCC) of low to medium bituminous rank is the main product. Ultra low-volatile


Photo 7. Mining continued at five large open-pit coal mines operated by Teck Coal Limited in the Elk Valley area of the East Kootenay region. View looking north of Burnt Ridge South pit highwall at Line Creek Operations.

pulverized coal injection (ULV-PCI) is also produced at the Brule and Willow Creek mines. Coal is shipped by rail to tidewater at Ridley Terminals in Prince Rupert.

Mining at Anglo American plc’s Trend mine included ongoing development to the southeast and planned addition of the Roman Mountain expansion. Production is expected to increase to 2 million tonnes by 2013 and double to 4 million tonnes by 2014.

The Perry Creek mine (Wolverine Project) of Walter Energy Inc was the company’s foremost revenue generator this year in the region. Mining operations progressed through several planned phases and a pushback of the highwall is being investigated as Phase-5. At the company’s Brule mine, the ‘Camp pit’ phase was completed in September and Phase 2 continued to the northwest and north. Mining will resume in the Dillon and Blind pits for several months next year (Photo 8). Raw coal is trucked 60 kilometres to the processing plant and rail loadout at the Willow Creek mine. The third operation of Walter Energy Inc is the Willow Creek mine where production was limited in the first quarter by a wash plant outage to upgrade HCC processing efficiency, and a new rotary breaker was installed at the processing plant.

Vancouver Island Coal Mines The Quinsam thermal coal mine near Campbell River

is forecast to produce approximately 365 000 tonnes of clean coal this year. The underground mine employs 140 workers. It supplied local cement plants and the international energy market. A newly developed area, the 7 South is now contributing to production.

INDUSTRIAL MINERAL MINES

The contribution of industrial minerals and aggregate production is significant, estimated at approximately 10% of total mine product value. Industrial minerals are mined and processed from more than 30 active quarries and over

Photos 8. Mining coal at the Walter Energy Inc Brule mine – Top Photo. Visitors view the Hitachi EX8000 shovel on a tour of the mine as part of the Northeast BC Coal and Energy Forum, October 9, 2012; Bottom Photo. Hauling a load from Phase 2 of the Brule pit.

1000 aggregate operations. Cement and construction aggregates constitute the largest share of the products. The centerfold map in this publication shows the location of many of these mines, their names and primary product. Readers are referred to the companion document Regional Geologist Summaries, Exploration and Mining in British Columbia 2012 (Photo 2) for details. Some commodities, such as the specialty metals, are commonly not considered industrial minerals, but are reported alongside more traditional programs because their discovery and development follow relatively similar paths.

MINE DEVELOPMENT STAGE PROJECTS

Metal Mines Thompson Creek Metals Inc stayed on schedule with

mine construction at the Mt. Milligan gold-copper project. By the end of September, almost $500 million had been spent on mine development and processing plant construction. Mining equipment arrived at the site in January; haul trucks arrived in the summer (Photo 9a). Drilling and blasting started in July, with small shots and test patterns, and mined material was used in tailings dam


construction (Photo 9b). Less than $600 million remains to be spent on the estimated $1.5 billion project before completion in the fall of 2013. The mine will be an open-pit operation with a 60 000 tonne-per-day mill.

Construction of the Red Chris mine began shortly after May 4, when owner Imperial Metals received a Mines Act Permit. Mine site preparations included pouring concrete foundations and installing other infrastructure components. The mine is scheduled to open in early 2014. Exploration drilling indicated extensive mineralization outside the current pit design, but was suspended as construction started.

In early December 2011, the Bonanza Ledge project of Barkerville Gold Mines Ltd received approval under the Mines Act to develop an open-pit gold mine. The site has been prepared for a four-year operation that will see the ore trucked 100 km to the QR Mine for milling.

Coal Mines Coalmont Energy Corp anticipates reopening the

Basin thermal coal mine early next year, after being on care and maintenance since 2007. The proposed open-pit

Photos 9. Thompson Creek Metals Inc stayed on schedule with mine construction at the Mt. Milligan gold-copper project. Top Photo. Mining equipment arrived at the site in January while haul trucks arrived in the summer; Bottom Photo. Drilling and blasting started in July, with small shots and test patterns, and mined material was used in tailings dam construction.

area has been prepared for mining, oxidized coal has been stockpiled, and the road connection to the Coquihalla Highway was upgraded. Production is expected to increase to 500 000 tonnes per year upon permit amendments.

EXPLORATION STAGE PROJECTS Exploration stage projects can include a spectrum of

activities from grassroots-level searches for new mineral occurrences through to highly detailed social and environmental evaluations of proposed mines. This is consistent with definitions used by the province’s Regional Geologists in their tracking of industry activities for summary and statistical purposes. Selected advanced or significant projects are summarized here and in Tables 2 and 3. More detailed information and additional projects can be found in companion publications.

The provincial Environmental Assessment Office indicated that, at year end, 28 mine proposals were in the process, with 2 currently under review and 26 at the pre-application stage (14 metal or industrial mineral, 11 coal and 3 aggregate). New to the process this year are the Bingay Main, Carbon Creek and Echo Hill coal projects, and the Blackwater gold-silver project.

Evaluation and advanced-stage metal and coal projects drove expenditures to $680 million last year, shattering the standing record of $463 million set in 2011 (Figure 4). A few of the metals projects were certainly candidates for largest exploration programs globally and gave an overall impression of a very healthy year. Regrettably, for many smaller companies and projects, a highly depressed equity market led to a virtual collapse of junior exploration. The province’s two major coal fields attained record levels of exploration spending.

COPPER, GOLD AND MOLYBDENUM EXPLORATION PROJECTS (PORPHYRY-RELATED)

Mine Evaluation Stage Resource definition drilling and geotechnical drilling

were the main activities at the Galore Creek copper-gold

Figure 4. Estimated mineral and coal exploration expenditures in British Columbia, 2002-2012.


project, as site engineering was optimised and baseline data collection continued. Nova Gold seeks to sell their 50% interest in the project. Teck holds the other 50%.

A feasibility study is due for the Schaft Creek copper-gold project after Copper Fox Metals Inc released an updated resource estimate in May. Exploration drilling targeted geophysical anomalies in untested areas and extended the regional mineralized trend.

The environmental assessment process is in its final stages for the Kitsault molybdenum project. An updated resource estimate released in April included recoverable lead, in addition to the molybdenum and silver resources. The past producer is already served by a road and power line.

In October, the provincial government announced its rejection of Pacific Booker Minerals Inc’s application for environmental certification of the Morrison copper-gold project. The company is studying the details of the decision to understand its implications for moving the project forward.

The proposed New Prosperity gold-copper porphyry mine of Taseko Mines Limited received an environmental certificate from the BC Environmental Assessment Office in January 2010. This year, Taseko submitted a revised environmental impact statement to the Canadian Environmental Assessment Agency, after the federal government’s rejection of an initial design. The redesigned project has moved mine infrastructure in an effort to protect a water body of local significance.

KGHM Ajax Mining Inc’s Ajax copper-gold porphyry proposed mine is undergoing environmental assessment. Its proximity to the city of Kamloops has necessitated extensive baseline studies on air and water quality, dust, and vibration, as well as traffic and socioeconomic impacts. The proposal would see a 60 000 tonne-per-day open-pit mine at the site of a former open-pit operation, part of the Afton mine that closed in the mid-1990s. Early to Advanced Stage

Exploration results returned late in the season have positive implications for the KSM project (Photo 10). A drill intersection of over 470 metres grading

0.90% copper and 0.31 gram per tonne gold from 20 metres depth at the Deep Kerr zone could represent a higher grade core of a giant porphyry system. Seabridge Gold Inc is planning an aggressive follow up drill program next year, after submitting an environmental assessment application.

Surrounding the Red Chris copper-gold mine development, a number of projects have been targeting similar deposits. Colorado Resources Ltd and Victory Ventures Inc are exploring the Eldorado and Capau prospects, respectively. West Cirque Resources Ltd recognized a new copper-gold porphyry system at Castle project where they completed drilling and geophysical

surveys (Photo 11). Drilling at Gnat Pass (part of the greater Galaxie regional exploration program) commenced late in the year by Quartz Mountain Resources and Amarc Resources. A regional program conducted by Teck explored three project areas (Eagle, Mcbride and Pitman). Teck also drilled at GJ, where several targets northeast of the known Donnelly zone were tested.

Drilling at the Ball Creek project returned significant intercepts of gold-copper mineralization. A corporate merger for Blue Gold Mining Inc leaves the immediate future project plans uncertain for joint venture partner Paget Minerals Corp.

New Nadina Exploration Limited commenced exploration drilling at the past producing Silver Queen property but not for historical polymetallic veins. Geophysical surveys and drilling confirmed significant porphyry copper-gold-molybdenum mineralization at Itsit, subsequently followed up by a winter drill program.

Xstrata completed two drill programs on their past producing Bell and Granisle mines with resource definition, geotechnical, and metallurgical objectives. Since mining ceased in 1992 meteoric water has been filling the pits and this summer a pilot water treatment plant was trialed with positive results.

Gold Reach Resources completed over 45 000 metres of drilling at their Ootsa project. Several drillholes intercepted copper-gold-silver-molybdenum mineralization over lengths of up to ~820 metres. An updated resource estimate released early in the year will soon be revised to include this year’s drilling.

Canadian Dehua International Mining Inc entered into an option agreement with Lions Gate Metals Inc to acquire the Poplar deposit. An updated resource estimate was released in February, which included the 2011 drilling results.

Romios Gold Resources Inc acquired additional tenures in the heart of the famed Golden Triangle; they now have continuous holdings from their Trek project to their Newmont Lake copper-gold projects. Drilling at Newmont Lake confirmed known mineralization in three prospective horizons.

AuRico Gold Inc awaited results of a feasibility study for a decision on the Kemess Underground copper-gold project. Completion of the study is expected by late

2012 to early 2013. In the meantime, environmental baseline studies and negotiations with First Nations continued, as did reclamation and closure work on Kemess South.

In the Quesnel Terrane, Orestone Mining Corp ran a small drill program to further explore the East Target at Captain and to follow up previous drilling that had tested a large combined magnetic-induced polarization geophysical anomaly.

Skeena Region

Omineca Region


Photo 10. Looking east towards the Mitchell Glacier from the centre of the Mitchell deposit at the KSM copper-gold project. Malachite staining (left side) is precipitated from ground water flowing out of the Mitchell Fault. The Mitchell Glacier has retreated over 200 metres since 2006.

Photo 11. West Cirque Resources drilling at the newly recognised Castle copper-gold porphyry target.

Serengeti Resources Inc drilled at Kwanika to test an induced polarization anomaly extending north of the Central Zone area, and a strong induced polarization-magnetic anomaly 15 kilometres to the south. They have initiated a preliminary economic assessment on the higher grade copper-gold resource. Serengeti also drilled at copper-gold projects Tchentlo and Choo, financed by Freeport-McMoRan of Canada Ltd, to test coincident induced polarization-magnetic-soil anomalies and induced polarization targets (Photo 12).

In the Toodoggone Region, Gold Fields drilled at the Mex, part of the Toodoggone project under option from Cascadero Copper Corp, to test a magnetic anomaly and explore deeper into the known Mex copper-gold-molybdenum porphyry system.

At the Rateria porphyry

Photo 12. Serengeti Resources Inc airlifting samples and supplies during a drilling program at the Tchentlo and Choo copper-gold projects.

copper-molybdenum property southeast of Highland Valley Copper mine, Happy Creek Minerals Ltd collected a bulk sample from drill core for metallurgical testing, and drilled two holes on a zone with anomalous rhenium. West of Rateria, the company flew a geophysical survey at their West Valley property.

Dundarave Resources Inc optioned the Jesse Creek property and flew an airborne magnetic gradiometer survey, followed by 69 line kilometres of induced polarization, mapping and geochemical surveys. They identify alkaline and calcalkaline porphyry environments. Thompson-Okanagan-

Cariboo Region


Dundarave sub-optioned the claims to Ocean Park Ventures Corp who started a drilling program in November.

Gold Fields Horsefly Exploration Corp continued to explore the Woodjam property northeast of Williams Lake (Photo 13). In March, the company released a preliminary resource estimate for the Southeast zone and reported a new zone (Three Firs) where three of seven drillholes had disseminated copper and gold over drill lengths of 100 to 350 metres.

Fjordland Exploration Inc regained 100% interest on its Tak property and will focus on refining induced polarization targets to be followed by drilling.

GWR Resources Inc made progress at its large Lac La Hache project. Deposit types and exploration targets include skarns, veins, breccia replacements, porphyries, and epithermal disseminations. The company reported its first resource estimate for the Spout copper-magnetite-gold-silver skarn zone. It conducted grassroots work on the Murphy Block, and drilled the Aurizon South gold-copper-silver zone, extending the zone 200 metres south.

At the Fox tungsten-molybdenum, property northeast of 100 Mile House, Happy Creek Minerals Ltd reported encouraging results from follow up drilling of the Ridley Creek zone and step-out drilling on zones to the south and north of Ridley Creek prospect.

Approximately 4 kilometres south of the Copper Mountain mine, Anglo-Canadian Mining Corp drilled at its Princeton Copper Gold project, and reported positive results for copper-silver mineralization.

In January, Sego Resources Inc conducted a diamond drilling program on the Cuba zone at their Miner Mountain copper-gold porphyry project. The program confirmed results of previous percussion drilling.

Altair Gold Inc conducted step-out and infill drilling on the Kena property south of Nelson. A 2012 resource estimate includes

10.85 million tonnes in measured and indicated categories, grading 0.71 gram per tonne gold in the Gold Mountain Zone and 14.68 million tonnes at 0.64 gram per tonne gold in the Kena Gold zone.

As part of its Island Copper project, Northisle Copper and Gold Inc re-logged and re-

sampled historical drill core and carried out new drilling on the Hushamu copper-molybdenum-gold project, which now has a new resource estimate (Photo 14).

Photo 13. Over 32 000 metres of drilling at the Woodjam copper-gold project this year by Gold Fields Horsefly Exploration Corp places it in the top few largest programs in the province.

Photo 14. Drilling in a snowstorm by Northisle Copper and Gold Inc at the Island Copper copper-molybdenum project (photo by J. Halle)

COAL EXPLORATION PROJECTS

Mine Evaluation Stage Mine evaluation activities continued at Teck Coal Limited’s mine operations in the East Kootenays this

year. Projects included the Line Creek Phase 2 Expansion, north of Line Creek Operations, and the Swift Project adjacent to Fording River Operations. Both are in the Environmental Assessment Process (application and pre-application stage, respectively).

Bingay Main, a new coal mine proposal of Centermount Coal Ltd, entered the pre-application stage of the Environmental Assessment process near the end of the year (Photo 15). Open-pit mining is proposed by for 15 years, to be followed by 5 years of underground mining. Production is anticipated to be 2 million tonnes per year of clean coal.

Fortune Minerals Limited and Posco Canada Ltd released a definitive feasibility study on the Arctos Anthracite coal project

East Kootenay Coalfields

Skeena Region

South/West Coast Regions

Kootenay Region


Photo 15. Geotechnical exploration drilling on the Bingay Creek property, a new coal mine proposal of Centermount Coal Ltd that entered the Environmental Assessment process near the end of the year.

(formerly known as Mount Klappan). The project contains several high rank coal deposits, of which only Lost Fox was incorporated into the study.

Anglo American plc’s expansion projects near the Trend mine are part of a development plan that would see

an increase in washed coal production to 2.5 million tonnes by 2016. Trenching and drilling programs were conducted at Roman Mountain and Horizon Ridge. A decision on an Environmental Assessment Certificate is pending on the former, while the latter is in the pre-application stage of the process.

Restart of the Teck Coal’s Quintette mine project remained on hold awaiting a Mines Act permit amendment and a First Nations third party review. The new operation would reopen the Windy and Window pits on Babcock Mountain and utilize existing infrastructure. A resource and geotechnical drilling program was carried out in late summer.

At the Gething project, Canadian Kailuan Dehua Mines Co Ltd conducted a geotechnical drilling program to identify ground conditions and geotechnical constraints for the engineering of mine surface facilities. An underground mining and coal processing operation is proposed.

Majority Partner Compliance Energy Corporation has taken the Raven underground coal project

south of Comox through the pre-application phase of Environmental Assessment process, receiving the project’s terms of reference in June (Photo 16). They may now submit the applications for the proposed 830 000 tonne per year (clean coal) semi soft coking coal mine. Early to Advanced Stage

At the Coal Creek project, Crows Nest Pass Coal Mining Ltd conducted a drilling program to

identify potentially underground-mineable reserves of hard coking coal in an area east of the historic Coal Creek and Elk River underground collieries. Baseline environmental studies were also carried out.

Teck Coal Limited continued to assess the Marten-Wheeler property as a possible open pit expansion area for Coal Mountain Operations. In addition to a large rotary drilling program, Teck carried out diamond drilling for mine design and coal sampling, as well as baseline environmental studies.

Jameson Resources Limited undertook a large drilling program on its Crown Mountain property, in order to define resources of surface-mineable hard coking coal.

Colonial Coal International Corp provided an updated resource estimate for the Huguenot project

that includes 2011 drilling from the North Block, delineates and updates historical results for the Middle and South Blocks, and incorporates

Photo 16. In the upper right of the frame is the site of the Raven project where Compliance Energy Corporation proposes an 830 000 tonne per year (clean coal) semi-soft coking coal mine. The past producing Tsable River coal mine is in the foreground.

Peace River Coalfield


East Kootenay Coalfields

Peace River Coalfield


underground resources. This year’s helicopter-supported exploration program included resource and coal-quality drilling.

HD Mining International Ltd undertook development work for surface facilities at the Murray River project, and prepared for the excavation of a 100 000 tonne bulk sample. The company plans to complete construction for an underground longwall mining operation by 2014. The project is in the pre-application stage of the Environmental Assessment process.

In January, Cardero Resources Corp (75%) and the Carbon Creek Partnership (25%) released a preliminary economic assessment of Carbon Creek project, followed by a prefeasibility study in September. This study significantly upgraded the project’s resources, and proposed a combined surface and underground operation. First production is forecast in the fourth quarter of 2014. This year’s exploration program was the last preceding a 2013 feasibility study and a Mines Act permit application. The project is in the pre-application phase of the Environmental Assessment process.

Canadian Dehua International Mines Group Inc continued exploration at the Bullmoose River project and commenced drilling at the Wapiti River project to better understand subsurface and coal characteristics. Drilling on both properties is planned to continue into 2013, and feasibility studies are planned for underground mine operations. Environmental baseline studies are underway.

Xstrata Coal expanded their coal holdings with the acquisition of the Sukunka project from Talisman Energy in March. It was subsequently announced that JX Nippon Oil and Energy of Japan would acquire a 25% stake in Xstrata’s western Canadian operations, and that a prefeasibility study of the newly named Suska (formerly Lossan) project would be completed by 2013. Resource, coal quality, and exploratory drilling was completed at Suska this year as part of a program that includes a second phase at Sukunka in early 2013.

Walter Energy Inc continued drilling the Brazion Group expansion projects for coal characteristic and structural information. This includes the Mink Creek East, Mink Creek West, Hudette, Willow South and Willow West areas.

Atrum Coal conducted an initial drilling program at the Groundhog anthracite project. A cumulative thickness of coal

averaged 20 metres over multiple seams intersected to 400 metres depth. A preliminary economic assessment is planned for completion in early 2013.

GOLD AND SILVER EXPLORATION PROJECTS (VEINS, BRECCIAS, DISSEMINATED)

Mine Evaluation Stage The exploration program at Blackwater was the

biggest in the province and included resource and geotechnical drilling of over 800 holes comprising about 236 606 metres. Drilling confirmed continuity of mineralization, a higher grade silver zone in the northwest, and extension to the north beyond the 1.1 square kilometre delineation grid (Photo 17). In March, New Gold Inc expanded their land position near the Blackwater project with the acquisition of Auro and Auro South from Gold Reach Resources Ltd. A preliminary economic assessment was completed in September, based on drilling to mid-May and a 60 000 tonne-per-day open-pit operation. The pre-application phase of the Environmental Assessment process was initiated late in 2012. A feasibility study is scheduled for completion in 2013.

Photos 17. The exploration program at the Blackwater gold-silver project was the biggest in the province and included resource and geotechnical drilling of about 236 606 metres. Top Photo. The delineation drilling grid from above (Photo by Lori Borth); Bottom Photo. Bleached versus less altered lapilli tuff with garnet replacement of fragment.

Skeena Region


Pretium Resources Inc completed 105 769 metres of drilling at the Brucejack gold-silver project, which increased confidence in estimated resources. This year 41 intercepts graded over 1000 grams per tonne gold including the highest grade intercept to date in hole SU-452: 0.5 m grading 41,582 grams per tonne gold plus 27,725 grams per tonne silver, part of a broader intersection of 10.71 m grading 2393 grams per tonne gold plus 1605 grams per tonne silver (Photo 18). Plans for 2013 include completing a feasibility study and taking an underground bulk sample from the Valley of the Kings zone.

Spanish Mountain Gold Ltd released a preliminary economic assessment of its flagship Spanish Mountain project, a low-grade, large tonnage gold-silver deposit in fine-grained sedimentary rocks; a relatively new class of deposits known provincially as shale-hosted gold deposits. Current resources support a 40 000 tonne-per-day mine for up to 15 years, at a capital cost of $755.9 million. The project has entered the formal environmental assessment process where it is at a pre-application stage.

Sona Resources Corp has received a special use permit that authorizes construction of an access road to connect the Elizabeth gold project and the former Blackdome gold mine and mill. Ore from the Elizabeth project will be mined from underground resources and trucked to Blackdome for milling alongside ore from that operation.

Gavin Mines Inc needs a mill for the Dome Mountain gold mine because a long term agreement for off-site milling of the 11 gram per tonne gold resource has not materialized. A working group comprising government and industry experts has been established to facilitate permitting of an on-site mill.

Banks Island Gold Corp is procuring mining equipment and camp facilities to begin test mining at the Yellow Giant gold project in 2013 (Photo 19). The project includes four, defined, near-surface, gold resources.

Yellowjacket Resources Ltd completed a reverse circulation drill program at the Yellowjacket gold project in the Atlin Gold Camp. The project is permitted for an

Photo 19. Banks Island Gold Corp is procuring mining equipment and camp facilities to begin test mining at the Yellow Giant gold project. Here the Tel zone of high-grade mineralization consists of quartz vein-hosted, massive, pyrite-pyrrhotite with interstitial sphalerite, galena and carbonate.

open-pit mine and onsite 400 tonne-per-day mill where gold may be recovered using a simple gravity concentrating recovery plant. Early to Advanced Stage

Ascot Resources released an initial bulk tonnage resource estimate for the Big

Missouri gold-silver project. Drilling this year targeted the surrounding deposits (Dilworth and Martha Ellen) and returned significant gold and silver values. The project area is adjacent to the past producing Premier-Silback gold mine.

Mountain Boy Minerals Ltd, with joint venture partner Decade Resources Ltd, drilled the past producing Red Cliff property, focussing mainly on the Montrose zone. Results include multiple significant gold intercepts with minor visible gold.

Teuton Resources Corp completed a program at the High property and confirmed gold mineralization near the southern margin of Pretivm Resources’ Brucejack project. At the Clone gold project, Canasia Industries collected 20 one tonne bulk samples that yielded an average of 53.1 grams per tonne gold.

Photo 18. High-grade gold from the Valley of the Kings zone at the Pretium Resources Inc Brucejack gold-silver project. This sample graded 41,582 grams per tonne gold plus 27,725 grams per tonne silver across 0.5 metre in drillhole SU-452.

Skeena Region


China Minerals Mining Corporation completed drilling at the Taurus and Table Mountain past producing gold deposits, now collectively known as the Cassiar Gold project. Infill drilling at Taurus confirmed bulk tonnage potential.

BC Gold Corp now owns 100% of the historic Engineer underground gold mine, and completed underground dewatering and rehabilitation. Access to deeper levels has not been possible since 1928. High-grade gold shoots were confirmed and extended to depth. Bulk sample material was milled and concentrated on site, producing 969 kilograms of concentrate that yielded 2112.2 grams of gold.

Brixton Metals Corporation completed a successful exploration drilling program at the Thorn project, returning highest grade results to date. Hole THN12-84 returned 123.0 metres grading 190.68 grams per tonne silver, 1.19 grams per tonne gold, 0.06% copper, 1.26% lead and 3.25% zinc from 44.0 metres depth. An aggressive follow up program is being planned to generate an initial resource estimate in 2013.

Argonaut Exploration Inc drilled at the Victor Vein, approximately 2.1 km south of the past producing Columario gold-silver mine. The program confirmed vein and mineralization continuity to the south. Argonaut has acquired mineral tenures covering several past producing precious metal mines, including Lucky Luke, Cordillera, and Dorreen.

Exploration conducted by Amarc Resources Ltd focussed on silver and copper mineralization around the MR showing; they refer to the project area as Silver Vista. The company has acquired tenure over approximately 720 square kilometres of surrounding ground, including geochemical anomalies.

To the northwest of the Blackwater project, New Gold’s drilling at Capoose approached 11 000 metres in over 22 holes.

Early assay results showed mineralization both within and beyond previously defined boundaries. Elsewhere in the Nechako Plateau, Independence Gold Corp updated the resource estimate for the Tommy, Ted, and Mint veins at the 3Ts project. Drilling tested the Ted and Mint veins down dip and along strike, and a Mint Vein northern extension. RJK Explorations Ltd completed a Phase 1 drill program at Blackwater East (Northeast). Two holes intersected pyritic intervals with elevated silver values, including 2710 grams per tonne silver over 3.3 metres. Venerable Ventures Ltd drilled at Trout to test three of seven targets generated by airborne geophysical and geochemical surveys designed to see through basalt cover. Parlane Resource Corp ran a late drill program at Big Bear to test five target areas following a geophysical survey and sampling program over nine gold-in-soil anomalies. Amarc Resources Ltd completed an induced polarization survey at Galileo, an extensive land package in what the company refers to as the Blackwater-Newton

gold belt. Amarc’s program at Hubble included an airborne geophysical survey and small drill program to test an induced polarization anomaly. Troymet Exploration Corp’s program at Key included an induced polarization survey across six target zones, and follow up drilling to test four coincident soil-induced polarization anomalies.

In the Toodoggone Region, Tower Resources Ltd drill tested the Finn Zone at their JD property. Near-surface mineralization was encountered that confirmed and extended historic results.

Continued drilling by Amarc Resources on the Newton gold and silver property has

led to the release of an inferred resource estimate. The project is similar to other large epithermal-style projects being explored in the province, including the Blackwater project approximately 175 km to northwest. Manado Gold Corp drilled the South and Bari zones on their Clisbako property, to test the extent and tenor of mineralization in silica stockworks and breccias.

Last year Barkerville Gold Mines Ltd drilled their Cariboo Gold gold project (approximately 58 000 metres). This year they announced a new resource with an increase in contained gold, supplemented by a report substantiating the release. A regulatory review cited technical disclosure concerns and the company reported that it has been working to prepare a satisfactory report. The company has since drilled a further fourteen holes, many of which twinned previous holes, toward resolving this issue.

WestKam Gold Corp reached an Advanced Exploration Agreement with the Stk’emlupsemc te Secwepemc Nation to prepare for work next year on their Bonaparte gold property. Planet Mining Exploration Ltd drilled the Golden Loon gold property to test the distribution and tenor of disseminated mineralization. Nickel, cobalt, and PGE mineralization hosted in an ultramafic intrusion is also found on this property.

Gold Mountain Mining Corporation conducted an exploration program on their Elk gold vein project that included drilling, induced polarization surveying, and bulk sampling. Bulk sampling was in an area of previously delineated mineralization east of the past producing Siwash North open-pit (Photo 20). Late in the year, the company filed an application under the Mines Act to increase permitted extraction from 10 000 to 70 000 tonnes per year. Berkwood Resources Ltd regained control of the Prospect Valley gold property and reissued a mineral resource estimate from recent work. The companies trenching and sampling extended gold mineralization for one kilometre along the projected trend of the Discovery zone. Nearby, Westhaven Ventures Inc completed an induced polarization survey and drill program at the Shovelnose epithermal gold property.

Omineca Region

Thompson-Okanagan-Cariboo Region


NelsonKelowna

Nanaimo

Victoria

Vancouver

Cranbrook

Prince George

Williams Lake

Prince Rupert

Fort St. John

Campbell River

Atlin

Masset

Smithers

Revelstoke

Fort Nelson

Kamloops

Stewart

JD

3Ts

KSM

Pie

Fox

Elk

Akie

EddyKena

Klow

Raven

J & L

Decar

Brule

Sully

Rozan

Thorn

Oosta

Clone

Trout

Suska

Shasta (Au, Ag)

Castle

Poplar

Hubble

Endako (Mo)

Quinsam

Kwanika

Gething

Captain

Capoose

Findlay

Granduc

Galileo

Rateria

Kenville

Huguenot

Morrison

Engineer

Ptarmigan

Iron Ross

Silvertip

Red Chris

GroundhogBrucejack

Gibraltar (Cu, Mo)

Elizabeth

Trend

Myra Falls (Zn, Cu, Au, Ag)Iron Range

Coal Creek

Ball CreekMt. Alcock

Shovelnose

Gold Viking

Bell Copper

Golden Loon

Willow Creek

Quinsam East

Murray RiverMt. Milligan

Elkview Coal

Bingay Creek

Yellow Giant

Schaft Creek

Kutcho Creek

Galore Creek

Red Mountain

Newmont Lake

Cassiar Gold

Wapiti River

Carbon Creek

Tak (Moffat)

Mount Polley (Cu, Au)

Island Copper

Coal Mountain

Slocan Silver

Yellowjacket

Kitsault

DomeMountain

Arctos

GJ (Kinaskan)

Horizon Ridge

Ruddock Creek

Bralorne (Au)

Bonanza Ledge

New Prosperity

Miner Mountain

Blackdome

Greenhills

Tulsequah Chief

Homestake Ridge

Prospect Valley

Newton

Highland Valley (Cu, Mo, Au, Ag)

Copper Mountain (Cu)

Huckleberry (Cu, Mo, Au, Ag)

Spanish Mountain

Kemess Underground

Cariboo Gold Quartz

Lac La Hache

Princeton Copper Gold

Greenwood Gold

Dilworth - Big Missouri

Big Bear

Silver Queen

Harper Creek

Roman Mountain

Marten-Wheeler

Crown MountainLine Creek

Tchentlo / Choo

Bullmoose River

Quintette-Babcock

Fording River

Blackwater

Woodjam

Blackwater East (Northeast)

Perry Creek (Wolverine)

Ladner Gold

TLGetty Copper

Clisbako

Bonaparte

Blue River

Aley

New Afton (Au, Cu)

Key

WaleGnat Pass

Capau

Mex

Basin

Treasure Mtn(Ag, Pb)

Ajax

International Silver

Operating Mines andSelected Major Exploration Projects

in British Columbia 2012Jim Britton; Robin Chu; Dave Grieve; Paul Jago; Jeff Kyba;

Bruce Madu; and Bruce Northcote

1. Apple Bay (Si, Cy)2. Benson Lake (Ls)3. Orca (At)4. De Cosmos Lagoon (Cy)5. Blubber Bay (Ls, At)6. Gillies Bay (Ls, At)7. Van Anda (Ls)8. K2 (Bu)9. Earle Creek (At)10. Sechelt Mine (At)11. McNab Valley (At)12. Mount Meager (Pm, At)13. Pitt River Quarry (At)14. Cox Station (At)15. Sumas Shale (Sh, Cy, Si)16. Pavilion Quarry (Ls)17. Décor (Sh)18. Ashcroft (Bs)19. Red Lake (Fr)20. Bud (Bn)21. Harper Ranch (Ls)22. Buse Lake (Si)23. Falkland (Gy)24. Klinker (Op)25. Kettle Valley (Bu)26. Winner (Mw)27. Lime Creek (Ls)28. Crawford Bay (Do)29. 4J (Gy)30. Elkhorn (Gy)31. Mount Brussilof (Mt)32. Moberly (Si)33. Blue River (Ta, Nb)34. Angus (Si)35. Carbonatite Syndicate (RE)36. Carbo (RE)37. Aley (Nb)38. Provencher, Kutcho, Cassiar (Jd)39. Fireside (Ba)40. Nonda (Si)41. Hoof (Mg)

0 100 200Kilometers

At - AggregateBa - BariteBn - BentoniteBs - BasaltBu - Building StoneCy - ClayDo - DolomiteFr - Fuller's earthGy - GypsumJd - JadeLs - Limestone

Mg - MagnesiumMt - MagnesiteMw - Mineral WoolNb - NiobiumOp - OpalPm - PumiceRE - Rare EarthSh - ShaleSi - SilicaSy - SyeniteTa - Tantalum

**

*

*

**

*

Industrial MineralsProducers and Exploration Projects*

* Exploration Projects

Open File 2013 - 1

Ag - SilverAu - GoldCu - CopperMo - MolybdenumZn - Zinc

Metal Mine Commodity Codes

Industrial Minerals Commodity Codes

11

10

318

136

76

*

*

CoalMineProposed MineSignificant Project

MetalMineMine DevelopmentProposed MineSignificant Project

InfrastructureRail LineMajor RoadsPorts

Kootenay-Boundary

Coast Area Northeast and Omineca

Thompson-Okanagan-Cariboo

Skeena

Vancouver Mineral Development OfficeName:Phone:Email:

Jim [email protected]

Name:Phone:Email:

Name:Phone:Email:

Name:Phone:Email:

Name:Phone:Email:

Name:Phone:Email:

Bruce [email protected]

Bruce [email protected]

Paul [email protected]

Vacant250-426-1758

Jeff [email protected]

BC Geological Surveywww.empr.gov.bc.ca/geology

This map shows the coal, industrial mineral and metal mines, and majorexploration projects of British Columbia that were active in 2012. Somesites were active for only part of 2012. Large exporting aggregateproducers are shown but not the many aggregate quarries serving localmarkets around the Province. Not all exploration projects in the Provinceare shown on this map.Information provided by the Province’s regional geologists: Jim Britton,Dave Grieve, Paul Jago, Jeff Kyba, and Bruce Northcote. Informationcompiled by Bruce Madu and Robin Chu of the British Columbia GeologicalSurvey.

Notes

Provincial Summary, Exploration and Mining in British Columbia 1514 Information Circular 2013-1

Photo 20. Gold Mountain Mining Corporation conducted an exploration program at the Elk gold project that included a bulk sample in an area east of the past producing Siwash North open pit.

Grizzly Discoveries Ltd’s work at the Greenwood Gold project included drilling in the Mount Attwood area targeting

coincident geochemical and geophysical anomalies previously untested by drilling. Anglo Swiss Resources Inc conducted a step-out and infill program to test southerly extensions of veins at the Kenville property, location of the past producing Kenville Mine. They have intersected vein extensions as far as 800 metres to the south. A geophysical target west of the mine was also tested.

At its Ladner Gold project, New Carolin Mines had a regional exploration program as well as

drilling. They updated resource estimates on the Carolin Mine area and McMaster zone this year and are working toward reprocessing the former Carolin Mine’s tailings to generate early cash flow.

ZINC, COPPER, LEAD, SILVER, AND GOLD EXPLORATION PROJECTS (VMS, SEDEX, STRATIFORM/STRATABOUND, VEINS)

Mine Evaluation Stage Chieftain Metals Inc is in the final permitting stages

to resume mining at the Tulsequah Chief copper-zinc-lead-silver-gold project (Photo 21). China CAMC Engineering Co Ltd and Procon Holdings (Alberta) Inc have signed a Memorandum of Understanding with Chieftain to acquire a 30% interest in the project. A positive feasibility study completed this year precedes anticipated construction in 2013 and final commissioning by late 2015.

Capstone Mining Corporation continues to gather baseline data for their Kutcho Creek copper-zinc project submission to the Environmental Assessment process sometime in 2013. An updated mine design includes a

Photo 21. Chieftain Metals Inc is in the final permitting stages to resume mining at the Tulsequah Chief copper-zinc-lead-silver-gold project. The water treatment plant shown in the photo reduced metal loading into the environment by 98%.

starter open-pit at the Main zone, and underground mining at the Esso zone.

Yellowhead Mining Inc has completed a feasibility study at its Harper Creek copper-gold-silver project that contemplated a 70 000 tonne-per-day mine. Currently, a comprehensive baseline environmental study is underway, ongoing consultation with local communities and First Nations is occurring and an 11 000 metre drill program started in early winter 2012.

The Ruddock Creek zinc-lead project is in the pre-application stage of the Environmental Assessment process. The project is owned by Imperial Metals Corporation and joint venture partners Mitsui Mining and Smelting Co Ltd and Itochu Corporation. A preliminary economic analysis, which will include a mineral resource estimate that incorporates 2012 drilling results, is anticipated early in 2013. On-site activities included surface drilling at the V and Creek zones, and underground drilling and a bulk sample extraction from the E zone. Early to Advanced Stage

In December, Castle Resources released an updated resource estimate on the past producing Granduc copper deposit, based

in part on 24 000 metre drill program (Photo 22). High-grade copper at the North and South zones continue to be validated and extended. A preliminary economic assessment is planned for release in early 2013.

Silvercorp Metals Inc continued evaluation of their Silvertip silver-lead-zinc-gold project, and is preparing a Mines Act permit application. A preliminary economic assessment outlines three underground mining scenarios of variable milling rates and seasonal operations.

Agnico-Eagle Mines Limited optioned the Homestake Ridge gold and silver-rich polymetallic

Kootenay Region


Skeena Region


Photo 22. Looking west-northwest over the former Granduc mill site towards the Berendon Glacier. This is the portal entrance to the refurbished 17 km Tide Lake Tunnel which serviced the underground mine workings during past operation from 1970-1984.

project from Homestake Resource Corporation. They drilled the South Reef zone, which follows the centre of a 4 kilometre mineralized trend that hosts defined resources in the Main zone. Regional groundwork at Kinskuch project has identified geology that is similar to the adjacent past producing Dolly Varden silver property.

The Red Mountain property was reactivated when Banks Island Gold Ltd entered into an option agreement with Seabridge Gold Inc to acquire 100% of the property. An updated preliminary economic assessment using historical data updated a resource estimate for four zones (Marc, AV, JW and 141).

Canada Zinc Metals Corp updated the resource estimate for the Cardiac Creek deposit on its Akie property. For the

Kechika Regional program, results from 2011 were followed up at Pie and Mt. Alcock, with additional geochemistry and mapping on several prospects. An airborne VTEM survey was flown over the properties, including Akie.

PJX Resources Inc drilled the Eddy property southwest of Cranbrook, along the Kimberley Gold Trend, targeting

geophysical anomalies that overlap historical showings of gold, copper, lead, zinc, and silver.

At the Findlay property MMG Limited targeted the horizon that hosted the past producing Sullivan lead-zinc-silver ore body with a helicopter-supported drill program.

Rainbow Resources Inc undertook an initial drill program on the Gold Viking silver-gold-lead-zinc past producer. The Gold Viking property is part of their larger Big Strike Project. Also part of the project is the International Silver property, where the target was the International silver-lead-zinc vein, which was intersected in fifteen holes.

Providence Capital Corp and Eagle Plains Resources Ltd continued their drill program at the Iron Range

project. Both SEDEX and possible IOCG mineralization types are known on the property. Recent exploration focused on potential SEDEX targets, specifically the Talon zone, where gold is associated with base metals.

Huakan International Mining Inc carried out an underground drilling program at the J&L gold-silver-zinc-lead deposit. Recent results have given this project an updated resource estimate at both the Main and Yellowjacket zones.

Silver Mountain Mines Inc drilled the Ptarmigan polymetallic property focussing on the past-producing Ptarmigan silver-gold-copper-zinc mine and Upper Ptarmigan and East Ptarmigan zones.

Emgold Mining Corporation carried out exploration diamond drilling on the Rozan property where known mineralization is mainly polymetallic, but the current focus of exploration is vein and disseminated gold.

Klondike Silver Corp carried out underground rehabilitation at its Slocan Silver project, specifically at the 4000 level in the Silvana past producing mine. They also mined and milled approximately 6000 tonnes of remnant ore recovered in the Silvana and Hinkley, another past producer.

East of the Rocky Mountain Trench, Omineca Mining and Metals Ltd drilled the Sully property, targeting a gravity anomaly that suggests potential for mineralization at the stratigraphic horizon that hosted the Sullivan lead-zinc-silver deposit. The hole deviated and missed its target; it was followed by down-hole and surface geophysics.

NICKEL AND MAGNESIUM EXPLORATION PROJECTS (ULTRAMAFIC ASSOCIATED)

Early to Advanced Stage

First Point Minerals Corp completed exploration drilling and geophysical surveys for nickel-iron-alloy at the Wale and Orca

prospects. Drilling identified over 260 metres grading 0.127% nickel in alloy from 4.3 metres depth in hole 12DH-06. A five tonne bulk sample was extracted for metallurgical testing.

First Point Minerals Corp provided an initial resource estimate for the Baptiste deposit at the Decar nickel-alloy project (Photo 23).

The project is under option to Cliffs Natural Resources Exploration Canada Inc, an affiliate of Cliffs Natural Resources Inc. This year’s exploration program extended near-surface mineralization in the south-central area, and further defined the volume of an east-west trending higher grade zone. A preliminary economic assessment is underway, with completion expected for March 2013.

Omineca Region

Kootenay Region

Skeena Region

Omineca Region


Photos 23. Cliffs Natural Resources Exploration Canada Inc produced an initial resource estimate for the Baptiste deposit at the Decar nickel-alloy project. Top Photo. Field staff at work in the core shack; Bottom Photo. Serpentinite speckled withawaruite grading 0.136% DTR Ni in hole 12-BAP-041 at 215 metre depth.

First Point Minerals Corp drilled the Klow project to test a northwest-trending corridor in the main zone that hosts elevated nickel-alloy values at surface. A ground magnetic survey for target development preceded the drilling.

Planet Mining Exploration Ltd continued work on their Golden Loon property,

where one target is nickel, cobalt, and platinum group

elements in a large, zoned, Alaskan-type ultramafic intrusion.

SPECIALTY METAL (REE, TANTALUM, NIOBIUM) EXPLORATION PROJECTS (CARBONATITE OR ALKALINE INTRUSIVE-RELATED) PROJECTS


In March, Taseko Mines Ltd announced a 170% increase to the inferred resource at the Aley niobium project, making it the

largest undeveloped niobium project in the world (Photo 24). With the resource able to support twenty five years of operation, the company focused on advancing preliminary engineering and site planning in support of a feasibility study expected in 2013.

Commerce Resources Corp reported progress on its Blue River project, a

tantalum and niobium-bearing carbonatite. The company completed metallurgical studies, structural geology reviews, and re-logged selected drillholes. Further mineral resource updates are expected in early 2013.

Photo 24. Taseko Mines Ltd announced a major increase to the inferred resource at the Aley niobium project, making it the largest undeveloped niobium project in the world. Photo shows geologist Mercedes Rich at the carbonatite contact in the Saddle zone with syenite-bearing fenite breccias.


Omineca Region



IRON PROJECTS (SKARNS, MAGMATIC CUMULATES)


Near Sayward, Canadian Nexus Ventures Ltd. and Canadian Dehua International Mines

Group Inc are planning to reopen a magnetite operation at the Iron Ross property with a proposed 70 000 tonne-per-year operation (Photo 25). Permitting and environmental studies are ongoing.

Private company Magnetite Ridge Metals and Minerals Ltd of Kamloops, continued

to investigate its large magnetite deposit at its Magnetite Ridge project in the Tulameen Ultramafic Complex. The company reports that metallurgical studies on a large composite sample, grading 30% magnetite, indicate its suitability as both steel smelter feed and a coal cleaning heavy medium.

INDUSTRIAL MINERALS AND AGGREGATES

Mine Evaluation Stage

The BURNCO Aggregate Project on Howe Sound is in the Pre-application stage of the

Environmental Assessment process of both provincial and federal agencies. BURNCO Rock Products Ltd proposes a one million tonne-per-year sand and gravel operation. The product is to be shipped by barge.

Photo 25. Old quarry site with massive magnetite at the Iron Ross project on Vancouver Island. A new 70 000 tonne-per-year operation is proposed by partners Canadian Nexus Ventures Ltd and Canadian Dehua International Mines Group Inc.


Noram Ventures Inc drilled the Kokanee flake graphite property northeast of Nelson. Previously explored for base metals, this

was the property’s first graphite exploration. The target was a 2 kilometre by 200 to 300 metre zone of graphite surface occurrences that coincide with an electromagnetic anomaly.

THE BRITISH COLUMBIA GEOLOGICAL SURVEY

The British Columbia Geological Survey (BCGS) continues to play a leading role in supporting a sustainable mining and mineral exploration industry. A priority of the survey is to generate new geoscience information to enhance the understanding of British Columbia’s geology. The Survey is committed to the public dissemination of applied, impartial scientific investigations, and geoscience data. This leads to attracting investment, reducing market risk, and enabling responsible management of British Columbia’s resources. This is commonly completed through cooperative partnerships with the federal government, universities, industry, and other public geoscience agencies.

MapPlace continues to provide clients with efficiencies in research time, data costs, and analysis. Improvements continue to be made to the province’s digital geological map, BCGeologyMap. Property File continues to grow with more than 35 000 unique industry documents and maps available online. MINFILE contains geological, location, and economic information on more than 13 000 metallic, industrial mineral and coal mines, deposits and occurrences in British Columbia. This year, the MINFILE database had an update of over 1600 occurrences and addition of 684 new occurrences. Users can now access more than 32 300 company mineral assessment reports using the online ARIS database. All geoscience publications and digital data are available online at the BCGS website: www.empr.gov.bc.ca/geology.

GEOSCIENCE BC - PUBLIC GEOSCIENCE DELIVERY OUTSIDE OF GOVERNMENT

Geoscience BC (GBC) is an industry-led, not-for-profit, applied geoscience organization. Established in 2005, its mandate includes the collection, interpretation, and delivery of geoscience data and expertise in order to attract investment in mineral and oil & gas exploration and development in the province. To accomplish this, GBC works in partnership with industry, academia, government, First Nations, and communities to identify and fund applied geoscience projects.




Kootenay Region


Project highlights from 2012 include:

• Launch of the Northern Vancouver Island Exploration Geoscience Project in July to stimulate exploration interest and investment on Northern Vancouver Island. The project currently includes two separate technical activities: a high-resolution airborne magnetic survey and a regional ground geochemical program. In addition, the project has supported two community workshops aimed at local First Nations and community members in the project area.

• Continued work on the QUEST-Northwest Project in northwest British Columbia, supporting a third high-resolution airborne magnetic survey in the region, which includes the Red Chris deposit.

• Launch of a collaborative regional seismic program in northeast British Columbia, to study the effect of induced seismicity from unconventional gas development.

• Release of fourteen reports and an annual Summary of Activities, containing fifteen technical reports.

For more information on GBC, its activities and project results go to www.geosciencebc.com

FOREIGN INVESTMENT INITIATIVES Throughout the year, the province’s Regional

Geologists and the Mineral Development Office in Vancouver provide information to potential investors, both domestically and abroad. This is commonly coordinated with industry associations, exploration and

mining companies, and other government agencies. The Ministry of Jobs, Tourism and Skills Training (JTST) is a key agency in coordinating foreign investment initiatives and provides much of the technical information. Each year, the province conducts a major investment mission to Asia, showcasing mineral and coal opportunities. This year, the mission included China and South Korea.

Opportunities exist for British Columbia companies to attract foreign investment using government assistance. If your company is interested in profiling your projects or investment opportunities in upcoming investment missions, contact the BC Mineral Development Office in Vancouver at the address below.

Bruce Madu, Director BC Mineral Development Office Suite 300 - 865 Hornby Street, Vancouver, BC V6Z 2G3 (604) 660-3332 [email protected]

ACKNOWLEDGMENTS The information contained in this publication, and

covered in more detail in the publication Regional Geologist Summaries, Exploration and Mining in British Columbia 2012 is provided by British Columbia’s Regional Geologists based in Cranbrook, Kamloops, Prince George, Smithers and Vancouver. Total Earth Science Services provided formatting and desktop publication services. Betty Chow in the Mineral Development Office provided invaluable service in key parts of the document. Editorial review and recommendations from Lawrence Aspler greatly benefitted the document.

Regional Geologists Contact Information: Skeena – Smithers Jeff Kyba 250-847-7787 [email protected] Omineca/Northeast – Prince George Paul Jago 250-565-4316 [email protected] Thompson/Okanagan/Cariboo – Kamloops Jim Britton 250-371-3903 [email protected] Kootenay/Boundary – Cranbrook Vacant South/West Coast – Vancouver Bruce Northcote 604-660-2713 [email protected] BC Mineral Development Office – Vancouver Bruce Madu 604-660-3332 [email protected]


TABLE 1. FORECAST MINE PRODUCTION 2012


TABLE 1. CONTINUED


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TABLE 3. SELECTED PROJECTS 2012


TABLE 3. CONTINUED



Documents

ministry of energy, mines and natural gas Provincial Summarycmscontent.nrs.gov.bc.ca/geoscience/PublicationCatalogue/... · 2013-03-12 · Ministry of Energy, Mines and Natural Gas